OVER THE YEARS, we have advised on more than 600 venture transactions, conducted dozens of research studies on joint venture performance and practice, and written more articles than we care to count.
And what have we learned?
Quite a lot, as it turns out. First, we have come to a much fuller appreciation of the unique challenges of joint venture dealmaking, and how the work of dealmakers can have such a profound influence on the ultimate success of the entity created. Second, based on recent analysis and thoughtful input from some of the most experienced venture dealmakers in the world, we have identified a set of Standards for JV Dealmaking Excellence. These standards include 20 practices that we believe differentiate successful joint venture dealmaking from approaches that are prone to inefficiencies, omissions, and mistakes. We assert that failure to meet any of these standards can sink a deal – or severely handicap a company’s future returns.
The purpose of this note is to summarize the gaps in joint venture dealmaking, outline the consequences of failing to address them, and illustrate a few of our Standards for JV Dealmaking Excellence...